UnThreaded | Threaded | Whole Thread (47) | Ignore Thread Prev | Next
Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: OT: Man in the White Suit Date: 2/9/2009 7:15 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
At 10 PM eastern, Turner Classic Movies is broadcasting The Man in the White Suit with Alec Guiness. Anyone interest in economics should watch it (I have the DVD recorder set.)

One reason I am so pessimistic about getting out of this economic mess is because I think its root go much deeper than Greenspan and company giving bankers a green light to gamble. Reckless lending is symptomatic of being too few people who are likely to pay the money back (note that if they bankers didn't understand this, they would not have pushed so hard to prevent restructuring of credit card and mortgage debt during bankruptcy).

The reason the economy has become so dependent on debt financing to fuel the demand side is because median incomes have been shrinking (real growth means that purchasing power must grow, which is why supply side economics is deflationary). Ultimately, this is a failure of the mythology that when good jobs are lost to increased productivity (or outsourcing) they will be replaced by better jobs. This simply has not happened (other than all those smoke and mirrors jobs in the finance and real estate industries).
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (47) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Macro Economics

2.1: The Labor Pool Problem
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement